Stephen Hester @ LSE tomorrow

Here's what he'll say:

1. RBS is recovering, possibly resuming paying dividends sometime in the near future.

2. RBS is deeply sorry and is in the process of making structural changes to ensure that things like libor manipulation don't happen again.

3. The culture within the banking sector is surely changing but it will take some time.


Here's what he should say but he won't say:

1. RBS is a zombie bank that should cease to exist. It's shareholders will never recover the losses from the bank's collapse and the taxpayer will be on the hook for more losses in the future as more bad paper sees the light of day now hidden from sight by dodgy accounting and off balance sheet entries.

2. RBS was neck deep into libor manipulation, as was Barclays and everyone else, and profited hugely by it at the expense of every other sector of the economy and the public at large. Since no one however is held accountable and no one ever goes to jail for fraud, it's only a question of time until the next scheme to game the system for profit and fat bonuses takes place again.

3. The culture of self-serving greed will never go away. Since the financial sector now *IS* the economy here in the UK and in the US, everyone from government, regulators, central banks and bank management has a vested interested in continuing reckless risk taking and massive bonus schemes hoping for the economic benefit of the "trickle down" effect………..which has been debunked years ago.



and the most important thing he should say but won't say

There can be no economic recovery unless the banks are broken up and reformed. TURN THE BANKS INTO UTILITIES.


I'll be there to hear.